X5 Retail Regulatory News (FIVE)

X5 GROUP AND SBER DISCUSS EXPANSION OF PARTNERSHIP IN ECOSYSTEM AND DIGITAL PRODUCT DEVELOPMENT

Moscow, 21 January 2022 - X5 Group and Sber are currently discussing expansion of their cooperation on joint projects in e-commerce, data architecture management, the development of cloud technologies and artificial intelligence, as well as the creation of virtual assistants.

X5 Group's main area of focus in e-commerce will be on developing express delivery services, while the Perekrestok Vprok "stock-up shopping" service may be merged into Sber's own e-commerce business and developed as part of its own ecosystem, in particular, with the SberMegaMarket marketplace.

The parties are currently in the process of negotiations and the outcome will be announced in due course.

Igor Shekhterman, CEO of X5 Group:

"Cooperation with Sber, which is one of Russia's technology leaders, in the field of ecosystem and digital products will enable us to strengthen our expertise in this area and to bring unique products and services to our clients faster. X5 Group's focus on developing express delivery from our stores will enable us to participate effectively in the digital race while leveraging our advanced infrastructure, scale, the strength of our retail brands and advantageous terms with suppliers."

Lev Khasis, First Deputy Chairman of the Board of Sberbank:

"Sber and X5 Group have millions of customers in common, and we see a significant level of potential synergy in our cooperation, which I am certain will be mutually beneficial for both our companies and our clients. We are currently discussing the details of further collaboration, which will be based, inter alia, on cutting-edge technological solutions by Sber, including in the fields of artificial intelligence, cloud computing, data analysis, and virtual assistants."

Note to Editors:

X5 Retail Group N.V. (LSE and MOEX: FIVE; Fitch, BB+; Moody's, Ba1; S&P, BB+; RAEX, ruAA+) is a leading Russian food retailer. The Company operates proximity stores under the Pyaterochka brand, Perekrestok supermarkets and Chizhik hard discounters. X5 provides an omnichannel experience to its customers, integrating retail stores and e-commerce through its businesses Vprok.ru Perekrestok, 5Post and Mnogo Lososya.

As of 31 December 2021, X5 had 19,121 Company-operated stores. It has the leading market position in both Moscow and St Petersburg and a significant presence in the European part of Russia. Its store base includes 17,972 Pyaterochka proximity stores, 990 Perekrestok supermarkets and 72 Chizhik hard discounters. The Company operates 47 DCs and 4,480 Company-owned trucks across the Russian Federation. X5 is one of the largest employers in Russia.

X5 is one of the largest employers in Russia. The Company employs over 340 thousand people..

For the full year 2020, revenue totalled RUB 1,978,026 million (USD 27,417 million*), EBITDA pre-IFRS 16 reached RUB 145,137 million (USD 2,012 million), and net profit pre-IFRS 16 for the period amounted to RUB 39,180 million (USD 543 million). In 9M 2021, revenue totalled RUB 1,597,289 million (USD 21,583 million**), adjusted EBITDA pre-IFRS 16 reached RUB 123,703 million (USD 1,671 million), and net profit pre-IFRS 16 amounted to RUB 38,943 million (USD 526 million).

X5's shareholder structure is as follows: CTF Holdings S.A., 47.86%; The Axon Trust, 11.43%; X5 directors, 0.10%; treasury shares, 0.01%; shareholders with less than 3%, 40.60%.

PJSC Sberbank is Russia's largest bank and a leading global financial institution. Holding almost one-third of aggregate Russian banking sector assets, Sberbank is the key lender to the national economy and one of the biggest deposit takers in Russia. The Government of the Russian Federation represented by the Ministry of Finance of the Russian Federation is the principal shareholder of PJSC Sberbank owning 50% plus one voting share of the bank's authorized capital, with the remaining 50% minus one voting share held by domestic and international investors. Sberbank has customers in 18 countries. The bank has a major distribution network in Russia with about 14,000 branches, while its international operations - subsidiary banks, branches, and chapters - include the UK, US, CIS, Central and Eastern Europe, India, China, and other countries. It holds general banking license No. 1481 dd. August 11, 2015, from the Bank of Russia. Official websites of the bank: www.sberbank.com (Sberbank Group website), www.sberbank.ru.

In 2020 Sberbank underwent a rebranding, offering financial and non-financial services of the bank and Sberbank Group to individual and corporate customers. Today, the Sber ecosystem is a raft of services for life and daily assistance in handling pressing everyday issues for individual customers and businesses. The Sber ecosystem website: www.sber.ru.

Forward-looking statements:

This announcement includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the fact that they do not only relate to historical or current events. Forward-looking statements often use words such as "anticipate", "target", "expect", "estimate", "intend", "expected", "plan", "goal", "believe", or other words of similar meaning.

By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, a number of which are beyond X5 Retail Group N.V.'s control. As a result, actual future results may differ materially from the plans, goals and expectations set out in these forward-looking statements.

Any forward-looking statements made by or on behalf of X5 Retail Group N.V. speak only as of the date of this announcement. Save as required by any applicable laws or regulations, X5 Retail Group N.V. undertakes no obligation publicly to release the results of any revisions to any forward-looking statements in this document that may occur due to any change in its expectations or to reflect events or circumstances after the date of this document.

*FX rate: 72.1464 USD/RUB

** FX rate: 74.0073 USD/RUB